SMG SM 131 Lecture Notes - Lecture 5: Operations Management, Process Design, Capacity Utilization

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Rebecca Nichols

Document Summary

Good - effectiveness: the extent to which the product and its delivery satisfy the customers" wants and needs. Cheap - efficiency: the extent to which products are produced using the fewest resources necessary. Task time: time required to complete a task. Task time = run time + setup time. Cycle time: (1) time between completion of successive units or jobs (2) rate at which a process completes jobs. Capacity: a process"s ability to complete units of work per unit time. Queue time: time spent waiting where no value is added. The input is not transformed in any material way. Ex. the cup for your drink, the people. The first person in line can start placing their order every 20 seconds. With 10 people in line in front of you that means you will be in line 200 seconds before you can start to place your order 10 cust x 20sec/cust.